NYC Mayoral Candidate’s Divestment Plans Face Hurdles Despite Pension Fund Influence
New York City mayoral candidate Zohran Mamdani’s ability to enact his stance on investments related to Israel may be limited despite potential influence over city pension fund boards, according to analysis and statements from key figures.
While Mamdani has indicated he would not invest city funds in Israel bonds – continuing a practice begun under current Comptroller Brad Lander – his capacity to push for broader divestment from Israeli assets is debated. Mark Levine, the likely next city comptroller, stated in September, “Just doesn’t have the votes for that,” regarding divesting pension funds. However, a recent analysis reveals Mamdani could potentially reshape the boards of two of the city’s five pension funds, opening a pathway for considering such divestment. Approximately $315 million in Israeli assets are currently held within the city’s five public pension funds, according to the comptroller’s office.
Advocates are optimistic about potential changes. Leah Plasse, a school-based social worker and member of NYC Educators for Palestine, expressed hope for a Mamdani administration, stating, “We have hope in a Mamdani administration.” The Board of Education Retirement System, with a 28-person board where the mayor appoints a majority, and the Teachers’ Retirement System, with three mayoral appointees on a seven-member board, are seen as key areas for potential influence. The movement for divestment, inspired by historical actions like those taken against South Africa in the 1980s, has gained momentum during the ongoing Israel-Hamas war in Gaza. For more information on the history of divestment as a political tool, see Britannica’s entry on divestment.
Despite the potential for change, Levine maintains that the mayor cannot unilaterally overrule the comptroller’s recommendations. He also emphasized the sound financial performance of Israeli investments, which benefit over 750,000 New Yorkers. Mamdani, when questioned, reiterated his support for the current comptroller’s approach to Israel bonds but did not elaborate on further actions regarding the Boycott, Divestment, and Sanctions movement. He prioritized his affordability agenda, including rent freezes and universal childcare, as the core of his administration. You can find more about the mayoral race and candidates at Headlinez News’ coverage of the NYC mayoral race.
Officials say advocates for divestment will continue to push their case before the pension boards, while the incoming comptroller is expected to advocate for continued investment in Israel bonds.
